Principle no.3

Principle no.3 – Contracts

Contracts fair, clear and simple, contract management in mutual respect

Contracts are becoming more and more complex and voluminous, often biased and irrational in distributing risks. Procurement procedures, especially in public tendering, are becoming more and more formalistic and not apt to select the best bidder. Contract administration is developing towards claim or anti-claim management and dispute prevention. 

Assessment criteria:

Have the contracts been fair, clear and simple enough for the project purpose?

Has the project delivery method (contractual structure) been appropriate?

Have tender procedures been fair, clear and simple enough for the purpose?

Have the best bidders and “right” project participants (see 1) been awarded?

Have contracts been managed in mutual respect, with the necessary understanding of the other?

Has mutual respect and appreciation always been part of project and contract communication.

Have potential conflicts been identified early and possibly been solved in constructive debate?

Have (unavoidable) conflicts been identified, handled and solved in a reasonable way?